Businesses face major recruiting challenges

Many small businesses are struggling with hiring and that will continue to be a trend in 2025, according to Robert Half.

The business consulting firm’s recent survey explored the top recruiting obstacles small and midsize businesses (SMBs) are currently facing. The survey, which included responses from over 1,700 hiring managers at small (20-99 employees) and midsize (100-999 employees) companies, provides insights to help SMBs navigate the complex hiring landscape.

Key challenges

One of the primary challenges is salary pressure. Nearly half of the hiring managers cited meeting candidates’ salary expectations as their greatest challenge through the end of 2025.

Another significant hurdle is the skilled talent shortage. More than 40 per cent of managers reported difficulty finding candidates with the necessary skills, which is a major concern as many SMBs look to expand their teams.

Costly hiring delays also pose a problem. About 40 per cent of hiring managers expressed concern over losing top candidates to competitors due to slow hiring processes. Prolonged hiring cycles can lead to increased workloads, burnout and higher turnover rates among existing staff.

Additionally, more than 40 per cent of managers anticipate challenges in finding candidates who align with their company culture. This cultural fit is crucial for maintaining a cohesive and productive work environment.

Strategies for Success

Dawn Fay, operational president of Robert Half, emphasized the need for SMBs to be creative, agile, and efficient in their hiring practices. To attract and retain top talent, SMBs should highlight their company strengths, such as corporate culture, values, flexible work options, and career advancement opportunities, on various platforms.

Streamlining hiring processes is also essential. SMBs can leverage their fewer stakeholders and reduced red tape to make quicker hiring decisions. Being flexible with requirements is another strategy; SMBs should consider training and upskilling high-potential candidates and using contract workers to fill skills gaps.

Partnering with specialized recruiters can also be beneficial. Recruiters can help market the company and identify suitable candidates, ensuring that SMBs can compete effectively in the job market.

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